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Citation:
IRENA (2021), Renewable Readiness Assessment: The Republic of Tunisia, International Renewable Energy Agency,
Abu Dhabi.
ISBN: 978-92-9260-296-3

About IRENA
The International Renewable Energy Agency (IRENA) is an intergovernmental organisation that
supports countries in their transition to a sustainable energy future and serves as the principal
platform for international co-operation, a centre of excellence and a repository of policy, technology,
resource and financial knowledge on renewable energy. IRENA promotes the widespread adoption
and sustainable use of all forms of renewable energy – including bioenergy, geothermal, hydropower,
ocean, solar and wind energy – in the pursuit of sustainable development, energy access, energy
security and low-carbon economic growth and prosperity.

Acknowledgements
This report was prepared by IRENA in close collaboration with the Government of Tunisia, as
represented by the Ministry of Industry, Energy and Mines and the National Agency for Energy
Conservation (ANME).
The report benefited from the input of various experts, notably from Amira Klibi (MEMTE), Jihene
Touil (UNDP), Rafik Bezzaouia (STEG), Rim Boukhchina (RCREEE), Nafaa Baccari (ANME).
IRENA colleagues who provided valuable review and support include: Abdulmalik Oricha Ali (ex-
IRENA), Imen Gherboudj, Huiyi Chen, Rafael De Sa Ferreira, Dolf Gielen, Asami Miketa.

Main Contributors: Zoheir Hamedi, Reem Korban, Gürbüz Gönül, Abdelkarim Ghezal (consultant)

Disclaimer

This publication and the material herein are provided “as is”. All reasonable precautions have been taken by IRENA to verify the reliability of the
material in this publication. However, neither IRENA nor any of its officials, agents, data or other third-party content providers provides a warranty of
any kind, either expressed or implied, and they accept no responsibility or liability for any consequence of use of the publication or material herein.

The information contained herein does not necessarily represent the views of all Members of IRENA. The mention of specific companies or certain
projects or products does not imply that they are endorsed or recommended by IRENA in preference to others of a similar nature that are not
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concerning the legal status of any region, country, territory, city or area or of its authorities, or concerning the delimitation of frontiers or boundaries.
June 2021 - International Renewable Energy ...
THE REPUBLIC
OF TUNISIA
June 2021 - International Renewable Energy ...
Renewable Readiness Assessment:

                           Foreword
                           from the Minister of Industry,
                           Energy and Mines

For over three decades, Tunisia has been committed to a clean energy transition through a proactive and
uninterrupted energy management policy, positioning itself as a pioneer in the region. Tunisia embarked on an
accelerated energy transition to achieve multiple objectives; to realise its energy security through a diversified
energy mix and to improve the country’s economic competitiveness within the framework of its strategic vision
towards a low-carbon economy.

Tunisia’s energy transition strategy is based on four main pillars: energy security; increasing energy independence;
reducing costs; and diversifying energy resources. With abundant renewables sources, renewable energy
technologies constitute the main pillar of Tunisia’s energy transition strategy given the socio-economic benefits
that this strategy will provide to the Tunisian economy in terms of increased investments, a clean economic
growth, job creation and preserving the environment. Similarly, improving energy efficiency would contribute to
this energy transition by reducing the demand for energy.

In this regard, a Tunisian solar plan was adopted in 2015, which aims to reduce primary energy demand by 30%
and increase the share of renewables in the electricity production mix to 30% by 2030.

I would like to thank the International Renewable Energy Agency (IRENA) for its support throughout the process to
deliver the Renewables Readiness Assessment report that provides a detailed analysis on the status of renewable
energy in the country and identifies short- to medium-term actions needed to develop enabling frameworks
conducive to increased renewable energy investments.

This analysis was conducted through close collaboration between the National Agency for Energy Conservation
(ANME), the Ministry of Industry, Energy and Mines and IRENA. It provides relevant and focused information to all
the stakeholders in the field of renewable energy, including governmental institutions, public and private-sector
companies, and regional and international development organisations.

On behalf of the Ministry of Industry, Energy and Mines let me reiterate my thanks to, all the IRENA team members
and national stakeholders who contributed to the completion of this report. I hope that this co-operation will be
accelerated in the future, allowing the achievement of the Energy Transition goals in Tunisia.

                                                                                  H.E. Mr Mohamed Boussaîd,
                                                                           Minister of Industry, Energy and Mines,
                                                                                                Republic of Tunisia

                                                         4
June 2021 - International Renewable Energy ...
The Republic of Tunisia

                      Foreword

                                                                                                                           FOREWORDS
                      from the
                      IRENA Director-General

Tunisia’s need to ensure a continuous energy supply, enhance energy security and long-term industrial and socio-
economic development provides a compelling case for renewables. As governments advance on recovery plans
amid significant public financing constraints, an energy transition with renewables is a central pillar of decarbonising
the energy mix. With increasing cost-competitiveness and abundantly available resources, renewable energy
solutions will be instrumental in achieving the objectives of improving energy security, reducing cost of energy
supply for consumers and advancing environmental preservation.

Tunisia’s energy transition is notably based on the implementation of an energy management strategy that is built
on the increase of energy efficiency and the development of renewable energy, with a 30/30 target to reduce
primary energy demand by 30% in 2030 compared to the trend scenario; and renewable energy to 30% of the
electricity production by 2030, in comparison to the installed 373 MW renewable energy in 2019.

Renewables Readiness Assessment: Tunisia, prepared in collaboration with the National Agency for Energy
Conservation (ANME) and the Ministry of Industry, Energy and Mines, identifies key challenges as the country
pursues environmentally and economically sustainable power and heat. It offers recommendations under five
thematic areas that address renewables applications in the power sector and long-term energy planning, and
attract renewable energy financing. The recommended actions present the collective outcome of which is for
renewables to reach a much higher share in Tunisia’s energy mix while improving energy security and cost of
supply.

Tunisia has made important strides over the past decade to encourage the involvement of the private sector
and accelerate the realisation of national objectives, the assessment finds the need to improve the mapping
of renewable energy resources, establish an energy planning framework with higher shares of renewables that
building capacity of local financing institutions and developers will unlock further investment in the sector, and
reinforce Tunisia’s renewable energy targets.

IRENA wishes to thank the team at ANME for their key input and engagement. We also appreciate the valuable
contributions of numerous other stakeholder and international partners. I sincerely hope the resulting study helps
to accelerate Tunisia’s shift to a sustainable energy future.

                                                                                           Francesco La Camera
                                                                                                 Director-General,
                                                                             International Renwable Energy Agency

                                                           5
June 2021 - International Renewable Energy ...
Renewable Readiness Assessment:

                                  6
June 2021 - International Renewable Energy ...
The Republic of Tunisia

Contents

                                                                                                      CONTENTS
Figures                                                                                          8
Tables                                                                                           9
Boxes                                                                                            9
Abbreviations and acronyms                                                                     10
Units of measurement                                                                           11
Executive summary                                                                              12
          Introduction                                                                         15

   1      1.1
          1.2
                Country background
                Renewables Readiness Assessment for Tunisia
                                                                                                15
                                                                                                17

          Energy context                                                                       18
          2.1   Energy supply and demand in Tunisia                                             19
          2.2   Electricity governance                                                          22
   2      2.3   Electricity supply and demand                                                   24
          2.4   Transmission and distribution                                                   25
          2.5   Electricity tariffs                                                             25

          Enabling environment for renewable energy                                            29
          3.1   Energy transition strategy                                                      29
                • Drivers for the energy transition strategy                                    30
                • Tunisian Solar Plan                                                           32
          3.2   Renewable Energy resources and exploitation                                     33
                • Wind energy                                                                   33
                • Solar energy                                                                  34
   3            • Hydropower                                                                    39
                • Biofuels and waste-to-energy                                                 40
                • Geothermal energy                                                            40
          3.3   Renewable Energy regulatory framework                                           41
          3.4   Renewable Energy institutional framework                                        47
                • Renewable Energy programmes and project pipeline                              47
          3.5   Financial initiatives for Renewable Energy                                      50

          Key challenges and recommendations                                                   52
          4.1   Long-term energy planning                                                       52
          4.2   Regulatory framework for Renewable Electricity generation                       54
   4      4.3   Institutional framework                                                         56
          4.4   Financing                                                                       57
          4.5   Maximising the benefits of Renewable Energy deployment                          58

References                                                                                     61
Annex 1. Renewable Energy institutional roles                                                  64
Annex 2. Sector coupling and the electrification of end-use sectors                            66

                                                      7
Renewable Readiness Assessment:

Figures
Figure 1     Gross domestic product growth: Annual change, Tunisia, 2000–2018                              15
Figure 2     Evolution of domestic primary energy supply and demand, Tunisia, 1990–2019                    18
Figure 3     Domestic primary energy production of crude oil and natural gas, Tunisia, 1991–2019           19
Figure 4     Total primary energy supply by source, Tunisia, 1990–2018                                     19
Figure 5     Energy import dependency, Tunisia, 2010–2018                                                  20
Figure 6     Energy import bill, Tunisia, 1993–2017                                                        20
Figure 7     Total final energy consumption, Tunisia, 2018                                                 21
Figure 8     Total final energy consumption by sector, Tunisia, 2018                                       21
Figure 9     Total final energy consumption by source and sector, Tunisia, 2018                            23
Figure 10 Annual peak load, Tunisia, 20017- 2018                                                           24
Figure 11 Evolution of electricity consumption by voltage level, Tunisia, 2018                             25
Figure 12 Evolution of electricity consumption in high-voltage and medium-voltage levels by                25
          economic sector, Tunisia, 2018
Figure 13 Evolution of medium-voltage electricity selling prices for Uniform tariff subscribers, Tunisia   28
Figure 14 Energy strategy targets, Tunisia                                                                 29
Figure 15 Global weighted average of total installed costs and project percentile ranges for               31
          concentrated solar power, solar photovoltaic and onshore and offshore wind, 2010 - 2018
Figure 16 Renewable energy target, Tunisia, 2030                                                           32
Figure 17 Wind map of Tunisia                                                                              33
Figure 18 Electricity generation of wind farms, Tunisia, 2009–2019                                         34
Figure 19 Global horizontal irradiance, Tunisia                                                            35
Figure 20 Direct normal irradiance, Tunisia                                                                35
Figure 21 Cumulative installed solar photovoltaic capacity for self-production on the low-voltage grid,    36
          Tunisia, 2011–2019
Figure 22 Sector distribution of photovoltaic projects relating to the medium-voltage grid, Tunisia,       37
Figure 23 Distribution of power installations, Tunisia,                                                    37
Figure 24 Registered Solar PV installers                                                                   37
Figure 25 Proposed TuNur consolidated solar power project in southern Tunisia                              38
Figure 26 Solar collector area installed under Prosol programme, Tunisia, 2005–2018                        38
Figure 27 Area of solar collectors, Tunisia, 2018                                                          39
Figure 28 Annual hydropower production, Tunisia, 2005–2018                                                 40
Figure 29 Flexibility solutions                                                                            43
Figure 30 Procedure for energy-selling projects under Authorisation scheme, Tunisia                        46
Figure 31 Project proposal procedure for energy-selling projects under Concession scheme, Tunisia          47

                                                         8
The Republic of Tunisia

Tables

                                                                                                                       FIGURES, TABLES AND BOXES
Table 1    Main economic indicators, Tunisia, 2015–2018                                                          16
Table 2    Composition of net power generation capacity, Tunisia, 2016 - 2018                                    24
Table 3    Low-voltage tariff categories, Tunisia                                                                26
Table 4    Current tariffs for low-voltage network, Tunisia, June 2019                                           26
Table 5    Time schedule for Four-shift tariff, Tunisia                                                          26
Table 6    Medium-voltage tariffs, Tunisia, June 2019                                                            27
Table 7    Medium-voltage tariffs, Gray Cement industry, Tunis                                                   28
Table 8    High-voltage electricity tariffs, Tunisia                                                             28
Table 9    Hydropower stations, Tunisia, 2015                                                                    39
Table 10   Overview of renewable energy support policies and regulation, Tunisia                                 41
Table 11   Criteria under the legal regimes for renewable energy projects, Tunisia                               42
Table 12   Provisions for self-consumption projects connected to low- and medium-voltage grids, Tunisia          45
Table 13   Revised renewable energy programme targets, Tunisia, 2017–2022                                        48
Table 14   Geographical distribution of renewable energy projects under Concession scheme, Tunisia               48
Table 15   Renewable capacities announced under the first call for projects,                                     49
Table 16   Proposed capacity for installation by Tunisian Company of Electricity and Gas, Tunisia                50
Table 17   Financial incentives provided by the Energy Transition Fund for renewable energy, Tunisia, 2018       51

Boxes
Box 1      Five pillars of Tunisia’s Strategic Development Plan, 2016-2020                                       16
Box 2      Tunisia Solar Plan                                                                                    32
Box 3      Open Solar Contracts, Tunisia                                                                         43
Box 4      Leveraging local capacity and the materials required for renewable energy technologies                56
Box 5      Leveraging local capacity, distribution of human resources and occupational requirements              60

                                                          9
Renewable Readiness Assessment:

Abbreviations
ANME         National Agency for Energy Management
             (Agence Nationale pour la Maîtrise de l’Energie)
ANGED        National Waste Management Agency
             (Agence Nationale de Gestion des Déchets)
CSP          Concentrated Solar Power
CTER         Technical Commission for Independent Power Production from Renewable Energy
             (Commission Technique de production privée de l’électricité à partir des Energies Renouvelables)
DNI          direct normal irradiance
FTE          Energy Transition Fund
             (Fonds de Transition Energétique)
GDP          gross domestic product
HV           high voltage
IPP          independent power producer
IRENA        International Renewable Energy Agency
LV           low voltage
MIEM         Ministry of Industry, Energy and Mines
             (Ministère de l’Industrie, de l’Energie et des Mines)
MISME        Ministry of Industry and Small and Medium-sized Enterprises
             (Ministère de l’Industrie et des Petites et Moyennes Entreprises)
MEMTE        Ministry of Energy, Mines and the Energy Transition
             (Ministère de l’Energie des Mines et de la Transition Enérgitque)
MV           medium voltage
NDC          Nationally Determined Contribution
             (national climate pledge under the Paris Agreement)
O&M          operation and maintenance
PPA          power purchase agreement
PV           photovoltaic
RRA          Renewables Readiness Assessment
SDP          Strategic Development Plan
SME          small or medium-sized enterprise
STEG         Tunisian Company of Electricity and Gas
             (Société Tunisienne de l’Electricité et du Gaz)
SWH          solar water heating
TFEC         total final energy consumption
TND          Tunisian dinar
TPES         total primary energy supply
TSP          Tunisian Solar Plan
VRE          variable renewable energy

                                                         10
The Republic of Tunisia

Units of measurement

                                                                          ABBREVIATIONS AND UNITS OF MEASUREMENT
GW     gigawatt
GWh    gigawatt-hour
kWh    kilowatt-hour
kWp    kilowatt peak
km     kilometre
km2    square kilometre
ktoe   thousand tonnes of oil equivalent
kV     kilovolt
m2     square metre
MW     megawatt
MWh    megawatt-hour
m/s    metres per second

                                           11
Renewable Readiness Assessment:

Executive summary

Tunisia has witnessed growing deficits in its energy balance        To achieve the country’s update objectives,
over the past two decades. This trend is largely the result         the TSP has established a target for total
of increasing energy consumption in all economic sectors,           installed   renewable       energy    capacity     at
coupled with the decline of hydrocarbon production.                 1 860 megawatts (MW) by 2023 and 3 815 MW by
This led to an energy deficit amounting to 50% in 2019              2030, a five-fold and ten-fold increase, respectively,
compared to 7% in 2010, thus leading the country to                 from the 2017 installed renewable energy capacity.
become more dependent on imported fossil energy.
                                                                    The targets were updated to reflect Tunisia’s climate
The electricity generation mix is dominated by natural              commitment to reduce the country’s carbon intensity
gas, while renewable energy resources represented only              by 41% compared to 2010 by 2030 compared to an
3.0% in 2019. This strong dependence on natural gas                 unconditional target to reduce carbon intensity by 13%,
has serious implications for Tunisia’s energy security,             specifically as pledged in its Nationally Determined
since domestic production of gas has stagnated to the               Contributions under the Paris Agreement. The bulk
point of even declining in recent years.                            of the country’s identified mitigation potential arises
                                                                    from the energy sector, including 68% from energy
In response to the energy security challenges of the                efficiency and 32% from renewable energy.
early 2000s, and Tunisia’s vulnerability to volatile
international energy prices, the country has decided to             The considerable amount of installed renewable
embark on an energy transition process as part of its               energy capacity needed to meet the targets set out
wider sustainable economic and social development                   in the TSP will require extensive private investment
strategy. Amid the coronavirus outbreak in early 2020,              support. In response, the Tunisian state adopted
renewables and energy efficiency have become a key                  regulatory reforms in 2015 through a new law (Law
part of the country’s recovery plans.                               No. 2015-12) relating to the production of electricity
                                                                    from renewable energy. The objective is to establish
Tunisia’s energy transition is notably based on:                    a legal framework that is conducive to private-
                                                                    sector investment in the production of electricity
• Diversification of the energy mix and integration of              that will arise from renewable energy sources
                                                                    through three new regulatory regimes: (i) self-
  renewable energies
                                                                    generation/consumption; (ii) independent power
• Strengthening energy efficiency                                   production for local consumption (concession and
                                                                    authorisation); and (iii) independent power production
• Rationalisation of the energy subsidy
                                                                    for export.
• Strengthening of the grid and the interconnections
                                                                    Notwithstanding the new legal framework and
The implementation of an energy management                          the various measures adopted by the Tunisian
strategy that is built on the increase of two components:           government over the past two years, several of these
(i) energy efficiency and the development of                        measures include enabling policy initiatives, update
renewable energy, with a 30/30 target to reduce                     of the current documentation surrounding current
primary energy demand by 30% in 2030 compared to                    electricity purchase agreements, and establishment
the trend scenario; and (ii) renewable energy to 30%                of guarantees to encourage the development of
of the electricity production by 2030.                              renewable energy. There remain several challenges
                                                                    that hinder the transition, however; these have been
The Tunisian Solar Plan (TSP) is the intended operational           identified under Tunisia’s national energy strategy.
tool to implement the strategy to increase the share of
renewable electricity. The latest TSP version was updated           Various barriers to renewable energy development
by Tunisia’s National Agency for Energy Management                  were identified through the Renewables Readiness
(ANME – Agence Nationale pour la Maîtrise de l’Energie)             Assessment (RRA) process. These could be addressed
in 2015 and adopted by the government in July 2016.                 through eight key recommended actions.

                                                               12
The Republic of Tunisia

                                                                                                                          EXECUTIVE SUMMARY
The RRA’s main recommendations can be summarised             Simplify procurement procedures for
as follows:                                                  power grid development

Establish a renewable energy planning                        • The acquisition and implementation of grid
and scheduling framework                                       transmission infrastructure by the Tunisian
                                                               Company of Electricity and Gas (STEG) is subject
• With the TSP calling for additions of about                  to long-running public procurement procedures,
  4 gigawatts (GW) of variable renewable energy                resulting in a time lag between renewable energy
  (VRE) sources (i.e. solar and wind power) to the             plant completion dates and connection to the grid
  grid, the country will require a holistic long-term          to send out the electricity produced.
  planning methodology that will include realistic
  scheduling for capacity additions to the national          • IRENA has established that integrated studies with
  electricity system beyond 2023. Advance plans on             key renewable energy stakeholders could help
  new capacity, locations and technologies can help            identify grid infrastructure scenarios. Such studies
  to address system constraints. VRE deployment                would reflect planned additions of both solar
  must be supported by robust long-term energy                 and wind capacity totalling 1 000 MW under the
  and power sector planning.                                   Concessions scheme. This would ensure alignment
                                                               between renewable generation development and
• The plan could also address electricity grid                 grid infrastructure reinforcement.
  infrastructure development to enable the smooth
  integration of VRE into the system. The plan               Clarify institutional roles and
  should provide long-term visibility on renewable           strengthen human resources
  energy development prospects in Tunisia. In this
  context, the opportunities for regional dialogue           • Private-sector developers have faced difficulties
  and collaboration are significant and may lead to            understanding the procedures to obtain authorisation
  broader flexibility solutions (IRENA, 2020a).                for projects, given the considerable number of
                                                               ministries and public institutions involved in renewable
Enhance renewables resource                                    energy projects. In response, the Government of
assessment through zoning                                      Tunisia has taken preliminary measures, supported by
                                                               international partners in the field, such as the United
• Long-term energy planning relies on data from                Nations Development Programme. Measures include a
  resource databases. Tunisia’s current resource               Help Desk provided by the ANME that would provide
  database, therefore, should be improved to reflect           guidance to the private sector.
  the recent assessment campaigns on renewable
  energy resources. More detailed resource data              • IRENA has found that combining efforts and
  will be essential to define promising development            creating a single online platform may ensure
  zones across Tunisia’s territory for different               transparency and clarity of the roles of the
  renewable energy technologies. The Global                    various involved institutions in terms of project
  Atlas for Renewable Energy, an online resource               agreements. The platform would include guidelines
  assessment platform hosted by the International              under a standard template and would list the
  Renewable Energy Agency (IRENA), provides                    public institutions involved, including the roles and
  guidance on identifying cost-effective zones with            responsibilities of each during the various stages
  high renewable energy potential.                             of project implementation (Section 4.3).

                            COVID-19 pandemic recovery
           Amid the coronavirus outbreak in early 2020, renewables
              and energy efficiency have become a key part of
                        the country’s recovery plans.

                                                        13
Renewable Readiness Assessment:

• Renewable energy transition will bring with it                                                   Create a dedicated financing mechanism
  ample benefits, including the opportunity to build                                               for solar water pumping
  human resources and skills. In this context, public
  institutions may opt to strengthen their current                                                 • Design a programme encouraging farmers to
  human capacity through enhanced training                                                           substitute solar photovoltaic (PV) energy for
  sessions on the technical, economic, administrative                                                diesel, given the important socio-economic
  and legal aspects relating to the development of                                                   impacts of solar water pumping. This programme
  renewable energy projects.                                                                         may be developed under the broader Prosol and
                                                                                                     Prosol électrique programme mechanisms, such
Establish an independent                                                                             that the state subsidy, including the credit system,
electric power regulator                                                                             is compatible with the repayment capacity of
                                                                                                     farmers.
• The procedures to create and establish an
  independent regulatory authority for the electricity                                             Involve local banks in the financing
  sector are being finalised as part of Tunisia’s NDCs                                             of renewable energy
  to ensure the achievement of its renewable energy
  targets. The authority will ensure compliance with                                               • The development of renewable energy applications
  regulations and will promote a transparent and fair                                                in Tunisia, particularly for farmers and small- and
  competitive environment for private producers.1                                                    medium-size enterprises, requires involvement by
                                                                                                     local banks. To improve the capacity for project risk
• The regulatory authority will, among other                                                         assessment at local financial institutions and boost
  responsibilities, oversee a range of project                                                       their confidence to develop lending schemes, the
  development procedures for renewable energy,                                                       government should reinforce their human and
  including the monitoring of legislation to ensure                                                  technical capacity.
  effectiveness and the validation of technical
  conditions for electricity evacuation. It also will                                              • The search for favourable foreign financial lines
  ensure the streamlining of not only the governing                                                  should be strengthened, particularly through
  administration but also of the various market                                                      bilateral co-operation and climate financing
  actors.                                                                                            programmes guaranteed by the Tunisian Guarantee
                                                                                                     Company (Société tunisienne de garantie)2 or
Operationalise the Energy Transition Fund                                                            reinforced by the Central Bank of Tunisia. This
                                                                                                     should reduce concerns that surround private
• The Energy Transition Fund (FTE – Fonds de                                                         sector investment risk over the need to commit
  transition énergétique) is the principal financing                                                 30% equity for PV installations and thus improve
  tool for energy efficiency and renewable energy                                                    financial viability.
  activities in Tunisia. For the fund to effectively
  support renewables in the country, work must                                                     • The Energy Transition Fund, Tunisia Investment
  begin to mobilise the necessary funding from                                                       Authority and Tunisian Guarantee Company can
  the public and private sectors to foster their                                                     be complemented with guarantee funds or secure
  development. To do this effectively will require a                                                 credit lines (e.g. liquidity guarantees or credit lines)
  combination of incentives, loans and credit lines                                                  to local commercial banks by international finance
  from international finance institutions.                                                           institutions like the French Development Agency
                                                                                                     (AFD) and International Finance Corporation.

1 Several international partners are working with ANME to establish an electricity regulatory authority to oversee licenses, power grid connections and third-party access for auto producers.
2 A public interest company that guarantees various loans granted to small- and medium-size enterprises by credit institutions.

                                                                                            14
The Republic of Tunisia

Introduction

                                                                                                                                INTRODUCTION
1.1 Country background

Tunisia is located in the northernmost part of Africa. Tunisia’s capital, Tunis, is in the
northeast of the country. The total surface area coverage of Tunisia is 163 610 square
kilometres (km2), with arable land constituting 19% of total land area (Trading
Economics, 2020) and the Sahara representing more than 30% (RES4MED, 2016).

The population of Tunisia in 2017 reached 11.54 million, with an annual growth rate
of 1.1%. Total urban population is 69% (INS, 2018a).

Tunisia benefits from unique climatic features, placing the country as an emerging
economic hub and attractive tourist destination. The climate varies considerably
from one region to another - Mediterranean in the north and along the coast, semi-
arid within the country and arid in the south. The landscape similarly contrasts, with
mountainous regions in the northwest, steppes in the centre, vast plains in the north,
the Sahel to the east and desert in the south.

Tunisia had an average annual gross domestic product (GDP) growth rate of 4.3%
over the period 2000–2010, and was considered the most competitive economy in
Africa. Despite political instability, Tunisia has witnessed a rapid recovery of its GDP
growth following a recession in 2011, reaching 4.0% in 2012. Since then, however, it
has struggled to maintain this level, with a 2.6% growth rate in 2018. The evolution
of GDP growth since 2000 is shown in Figure 1.

Figure 1. Gross domestic product growth: Annual change,
          Tunisia, 2000–2018

                 8.0

                 7.0
                                            6.2                  6.7
                 6.0

                 5.0    4.7
                                                           5.2                      4.0
                 4.0          3.8         4.7                          4.2
GDP growth (%)

                                                                                                3.0
                 3.0                                 3.5                     3.5
                                                                                                                1.8 2.5
                                                                       3.0                2.9
                 2.0                                                                                                      1.4

                 1.0                1.3                                                               1.2 1.3
                 0.0
                       2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
             (1.0)

           (2.0)                                                                   -1.9

           (3.0)
                                                                                                       Annual growth (%)

Source: Trading Economics (2020).

                                                15
Renewable Readiness Assessment:

Table 1. Main economic indicators, Tunisia, 2015–2018

                                                                               2015           2016             2017             2018
 Investment rate
                                                                               19.9           18.4              19.3             20.4
 (% of GDP)
 Unemployment rate
                                                                               15.4           15.5              15.5             15.5
 (%)
 Rate of coverage
                                                                               69.7           69.8             68.8              69.2
 (exports/imports in %)
 Budget deficit
                                                                               4.8             6.2              5.9              4.6
 (% of GDP)
 Government debt
                                                                               55.4           61.9             69.9              71.4
 (% GDP)
Source: Central Bank of Tunisia (2018).
Note: GDP = gross domestic product; GNDI = gross national disposable income.

Several factors challenge the national economic                                       Box 1. Five pillars of Tunisia’s Strategic
situation today, including the devaluation of the                                            Development Plan, 2016-2020
Tunisian dinar, thus amplifying the public debt and
foreign trade deficit to record highs. As of September                                • Good governance includes fighting corruption
2018, Tunisia has a public debt of 71.4% relative to                                    and easing the administrative barriers to
GDP, with a foreign trade deficit that widened by                                       economic participation, in order to increase
16.8% over 2017 (Trading Economics, 2020). Table 1                                      opportunities for success for all citizens.
presents further details on the economic indicators
recorded in Tunisia during the last few years.                                        • Shifting to a hub economy focuses on
                                                                                        increasing productivity for competitiveness
Tunisia has undertaken a series of reforms, including a                                 and positioning Tunisian businesses in global
Strategic Development Plan (SDP) that was adopted                                       value chains.
for the period 2016–2020 to boost economic activity
and investment, as well as to reassure stakeholder                                    • Promoting human development and social
confidence. The SDP represents a new development                                        inclusion emphasises quality education,
model that is based on the promise of a new social                                      women’s participation in economic and
contract under which the state is expected to provide                                   political activity, improved health outcomes,
a level playing field to ensure inclusion and equal                                     and a social protection system.
opportunity.
                                                                                      • Tackling regional disparity seeks to achieve
The main objective of the SDP is the transformation                                     the ambitions of economic development
and modernisation of Tunisia’s existing economic                                        in rural regions through advancing
model, aiming to reduce unemployment to 11.5% and                                       investment in infrastructure and supporting
reach an average GDP growth rate of 5% in 2020.                                         entrepreneurship.

                                                                                      • Promoting green growth for sustainable
                                                                                        development to ensure the sound utilisation
                                                                                        of natural resources, with emphasis on
                                                                                        rationalising water and energy use.

                                                                                16
The Republic of Tunisia

                                                                                                 Applying the RRA framework to Tunisia provides a

                                                                                                                                                                                             INTRODUCTION
1.2 Renewables Readiness Assessment
    for Tunisia                                                                                  comprehensive analysis of the presence or absence of
                                                                                                 enabling conditions for the development of renewables.
The International Renewable Energy Agency (IRENA)
developed the Renewables Readiness Assessment                                                    Crucially, the analysis considers how the country’s
(RRA) as a tool for carrying out a comprehensive                                                 renewable energy policies can contribute to its national
evaluation of the conditions for renewable energy                                                policy objectives. This coincides with the government’s
deployment in a country. The RRA is a country-led                                                efforts to assess the context for renewables in Tunisia,
and consultative process. It provides a framework                                                particularly since the introduction of the country’s
for multi-stakeholder dialogue to identify challenges                                            renewable energy action plan, the Tunisian Solar Plan
to renewable energy deployment and to arrive at                                                  (TSP), was put in place in 2015. The RRA highlights the
recommendations to overcome existing barriers.                                                   key issues to be tackled in implementing the TSP, with
Short-and medium-term recommended actions are                                                    the aim of recognising Tunisia’s positionas a regional
presented to governments to guide the formation                                                  hub economy as part of the broader framework of
of new policies or the reform of existing ones, thus                                             the SDP.
opening a more enabling environment for renewable
energy. The RRA also consolidates existing efforts and                                           A general overview of the Tunisian energy sector
mobilises resources for priority actions.                                                        was outlined during the first stage of process, with
                                                                                                 a special focus on renewable energy. Potential
The RRA elaboration process was launched at the                                                  barriers and bottlenecks were identified to the ensure
request of the previously known Ministry of Energy,                                              successful deployment of renewables. IRENA and
Mines and Renewable Energy (Ministère de l’Energie
                                                                                                 ANME organised an expert validation workshop on
des Mines et des Energies Renouvelables), now known
                                                                                                 21 June 2018 to validate these findings and facilitate
as Ministry of Industry, Energy and Mines. However,
                                                                                                 open dialogue among a wide range of stakeholders.
from March 2020 to October 2020, renewable energies
                                                                                                 The main objectives were to discuss the identified
were taken up by the Ministry of Energy, Mines and the
Energy Transition (Ministère de l’Energie des Mines et                                           challenges for renewable energy deployment and the
de la Transition Enérgitique). From September 2018                                               corresponding recommendations to ensure favourable
to March 2020, renewable energies were taken up by                                               conditions for the sector.
Ministry of Industry and Small and Medium Enterprises
(MISME – Ministère de l’Industrie et des Petites et                                              The event provided the opportunity to review global
Moyennes Entreprises,).3                                                                         renewable energy best practices and highlight the
                                                                                                 country’s commitments to renewable energy. It
IRENA developed this RRA assessment for Tunisia                                                  enabled local stakeholders to validate the set of
in conjunction with the National Agency for Energy                                               recommended actions identified through the RRA
Management (ANME – Agence Nationale pour la Maîtrise                                             process to further advance the renewable energy
de l’Energie), the public agency responsible for executing                                       sector, for endorsement by MEMTE. This report lays
the government’s policies in energy management                                                   out the necessary actions and conclusions drawn from
studying and promoting renewable energy.                                                         the RRA process in Tunisia.

3 Given the role of the different institutions in renewable energy governance, citations within the report are referenced to the Ministry of Industry and Small and Medium Enterprises and
  the Ministry of Energy, Mines and Renewable Energy.

 Meteline – Kchabta wind park in Bizerte
 Photograph: National Agency for Energy Conservation (ANME)

                                                                                          17
Renewable Readiness Assessment:

                             Energy Context

                             The energy sector is a key contributor to Tunisia’s various economic sectors. In the
                             past two decades, however, the country has witnessed a growing energy balance
                             deficit, largely as a result of relying on fossil fuel sources – oil and natural gas – to
                             meet its heightened energy demand. The decline of its own hydrocarbon resources
                             has led to increased dependence on fossil fuel imports, which rose to record levels
                             in 2019 when the deficit in the balance of primary energy reached 5 672 thousand
                             tonnes of oil equivalent (ktoe), as shown in Figure 2, highlighting that 49% of total
                             energy consumed is imported.

                             In response, Tunisia has begun to leverage its wide array of renewable energy sources
                             to diversify its energy mix. This is coupled with energy efficiency programmes to
                             alleviate its energy balance deficit.

                             Figure 2. Evolution of domestic primary energy supply and demand,
                                       Tunisia, 1990–2019

                                                           10000

                                                                   9000

                                                                   8000
                             Total Primary Energy (thousand toe)

                                                                   7000

                                                                   6000

                                                                   5000

                                                                   4000

                                                                   3000

                                                                   2000

                                                                   1000

                                                                     0
                                                                          1990
                                                                                 1991
                                                                                        1992
                                                                                               1993
                                                                                                      1994
                                                                                                             1995
                                                                                                                    1996
                                                                                                                           1997
                                                                                                                                  1998
                                                                                                                                         1999
                                                                                                                                                2000
                                                                                                                                                       2001
                                                                                                                                                              2002
                                                                                                                                                                     2003
                                                                                                                                                                            2004
                                                                                                                                                                                   2005
                                                                                                                                                                                          2006
                                                                                                                                                                                                 2007
                                                                                                                                                                                                        2008
                                                                                                                                                                                                               2009
                                                                                                                                                                                                                      2010
                                                                                                                                                                                                                             2011
                                                                                                                                                                                                                                    2012
                                                                                                                                                                                                                                           2013
                                                                                                                                                                                                                                                  2014
                                                                                                                                                                                                                                                         2015
                                                                                                                                                                                                                                                                2016
                                                                                                                                                                                                                                                                       2017
                                                                                                                                                                                                                                                                              2018
                                                                                                                                                                                                                                                                                     2019

                                                                                                                                                                              Total domestic supply                                                      Total demand
                             Source: (MISME, 2019a)

                                                                                                                           18
The Republic of Tunisia

                                                                                                                                                                                         ENERGY CONTEXT
2.1 Energy supply and demand in Tunisia                                                                  Domestic production of oil and natural gas has dropped
                                                                                                         significantly since 2010 (54% and 47%, respectively), as
The country is close to being fully electrified at 99.8%. The                                            shown in Figure 3.
electricity generation mix is dominated by natural gas at
97.5%. The strong dependence on natural gas has serious                                                  In 2018, natural gas accounted for 48.7% of total primary
implications for Tunisia’s energy security, as domestic                                                  energy supply (TPES), equivalent to 5 569 ktoe, and oil
production of natural gas has stagnated and even declined                                                (including primary and secondary oil) accounted for 40.8 %
during recent years. Between 1990 and 2019, primary                                                      of TPES, totalling 4 665 ktoe (Figure 4) (MISME, 2018b). The
energy production fell from 5 400 ktoe to 3 703 ktoe.                                                    remainder largely came from biomass and waste sources.

Figure 3. Domestic primary energy production of crude oil and natural gas,
          Tunisia, 1991–2019
                            7 000
prodcution (thousand toe)
Domestic primary energy

                            6 000
                            5 000
                            4 000
                            3 000
                            2 000
                            1 000
                                0
                                    1991     1993            1995     1997   1999    2001         2003    2005    2007     2009         2011    2013      2015       2017         2019
                                                                                                                                                  Crude oil          Natural Gas
Sources: INS (2018a), MISME (2019a).

Figure 4. Total primary energy supply (TPES) by source, Tunisia, 1990–2018

                                                         12 000

                                                         10 000

                                                         8 000
                                           TPES (ktoe)

                                                         6 000

                                                         4 000

                                                         2 000

                                                             0
                                                                    1990      1995          2000         2005      2010           2015         2016         2017            2018
                   Coal                                              82        71            79           0          0             0            0                0           0
                   Natural Gas                                      1 234    1 924          2 732        3 091     5 083          5 055        5 209       5 436            5 569
                   Nuclear                                           0          0            0            0          0             0            0                0           0
                   Hydro                                             4          3            6            12         4             6            4                2            1
                   Geothermal, solar, wind                           0          0            2            4         39             89          100           103             103
                   Biofuels and waste                               638       750           934          1 121     1 058          1 076        1 081        1 082           1 090
                   Primary and secondary oil                        2 989    3 053          3 554        4 087     3 933          4 573        4 552        4 612           4 665

Sources: INS (2018a), MISME (2019a).

                                                                                                    19
Renewable Readiness Assessment:

Primary energy demand reached 9 606 ktoe in 2019              The country’s energy deficit problem is likely to
against 8 358 ktoe in 2010, with an average annual            deteriorate further given rising energy demand,
growth rate of 1.7%. After a dip in 2016, the energy          coupled with depleting oil and gas production.
demand/supply balance deficit accelerated again               The current increase in energy imports highlights
in 2017, strengthening a major structural deficit that        Tunisia’s economic and social vulnerability amid
compels the country to further rely on energy imports,        volatile international energy prices, further
increasing from an import dependency rate of 7% in            amplified with the devaluation of the Tunisian dinar
2010 to 60% in 2018, as shown in Figure 5.                    (TND). Figure 6 shows the evolution of the energy
                                                              import bill, which peaked in 2014 at more than
                                                              TND 7 billion (over USD 3.5 billion at the time or
                                                              USD 2.5 billion at mid-2019 exchange rates).

Figure 5. Energy import dependency, Tunisia, 2010–2018

       2018

       2017

       2016

       2015
Year

       2014

       2013

       2012

       2011

       2010

            0%                  10%      20%      30%              40%            50%           60%               70%

Sources: ONE (2018a), MISME(2019b).

Figure 6. Energy import bill, Tunisia, 1993–2017

                                                Millions (TND)

 2019         194                     6 285                              3 388

 2018          801                      5 676                         2 523

           0                2 000       4 000      6 000             8 000           10 000              12 000
                                                                              Crude Oil   Oil products      Natural Gas

Source: INS (2018b).

                                                         20
The Republic of Tunisia

                                                                                                                                                                                              ENERGY CONTEXT
According to the National Energy Observatory                                                     Energy is used in various end-use sectors in the
(Observatoire National de l’Energie),4 total final                                               economy, including transport (32%), industry (27%)
energy consumption (TFEC) reached approximately                                                  and the residential sector (27%). This is followed by
8 710 ktoe in 2019; excluding biomass,5 it amounted to                                           the commercial and agricultural sectors (8% and 6%,
7 620 ktoe. Oil products accounted for 53% of TFEC,                                              respectively), as shown in Figure 8.
followed by natural gas and electricity in equal shares,
as shown in Figure 7.

Figure 7. Total final energy consumption, Tunisia, 2018

                                                                                                                      10.0%                     14.0%
                    16.3%
                                                                52.6%                                   6.3%
          0.8%

                                                                                                                                                                  15.3%
     12.5%

                                                                                                                                                                0.7%
                                                                                                                                                              6.5%
                                                                                                    47.2%
                 17.8%

                                                         Oil products              Natural gas             Biomass             Gasoline            Kerosene             Jet fuels
                                                         Solar, Geothermal, etc.                 Electricity           Diesel oil          Fuel oil         LPG          Petcoke

Source: MISME (2018b).
Note: LPG = liquefied petroleum gas.

Figure 8. Total final energy consumption by sector, Tunisia, 2018

                                                                      6%

                                                     8%
                                                                                                          27%

                                                                                                                               Industry
                                                                                                                               Transport
                                                                                                                               Residential
                                                                                                                               Commericial
                                       27%
                                                                                                                               Agriculture

                                                                                                     32%

Source: IEA (2019), MISME (2019b).

4 The National Energy Observatory is the public institution mandated by MEMTE to ensure the effective collection of data relevant to energy. Since April 2017, it has been renamed the
  National Observatory of Energy and Mines (Observatoire National de l’energie et des Mines).
5 Biomass in the Tunisian context mainly relates to modern means of biomass, as defined by the International Energy Agency’s statistics database, used in relation to Tunisia’s residential
  sector (Figure 9).

                                                                                          21
Renewable Readiness Assessment:

Figure 9. Total final energy consumption by source and sector, Tunisia, 2018

                                                                              4000

                              Total final energy consumption (thousand toe)   3500

                                                                              3000

                                                                              2500

                                                                              2000

                                                                              1500

                                                                              1000

                                                                              500

                                                                                0
                                                                                                                                Commercial and
                                                                                     Transport   Industry         Residential                      Agriculture
                                                                                                                                 public services
      Biofuels and waste                                                                0           0                855               12              0
      Electricity                                                                       9          493               430              387             100
      Natural Gas                                                                       185        907               252              190              26
      Oil Products                                                                     2364        2162              583              101             398

Source: IEA (2019), MISME (2019a).

The source of TFEC differs from one economic                                                                • Directorate General for Electricity and Renewable
activity to another. Figure 9 shows that natural gas                                                          Energy: Responsible for implementing state policy
is consumed mainly by the industrial sector, while the                                                        in the renewable energy sector and examining
energy consumption of the agricultural, residential                                                           requests for private production and self-
and transport sectors is dominated by petroleum                                                               consumption of electricity from renewable energy.
products, particularly liquefied petroleum gas in
households that are not connected to the natural gas                                                        • Directorate General for Energy from Hydrocarbon
distribution network.                                                                                         sources: Re-sponsible for implementing state
                                                                                                              policy in the hydrocarbon sector.
2.2 Electricity governance
                                                                                                            • Directorate General for overseeing Strategy
As of March 2020, the Tunisian electricity sector is                                                          and Co-ordination: Responsible for developing
managed by the Ministry of Energy, Mines and the                                                              programmes and strategies, as well as national
Energy Transition. For the past two years, renewable                                                          and sectoral policies, pertaining to the energy
energy portfolio was managed by the Ministry of                                                               sector, coupled with action plans to ensure better
Industry, Small and Medium Size Enterprises. MEMTE                                                            management of resources.
is responsible for electricity infrastructure, planning
and the implementation of national policy in the field                                                      • Directorate General for Manufacturing Industries:
of electricity, energy efficiency and renewable energy,                                                       Responsible for implementing government policy
with regulatory oversight also carried out by the                                                             relevant to industry, including development of an
ministry. Yet, Tunisia has no independent regulator.                                                          enabling environment for the promotion of the
Instead, MEMTE monitors and analyses the evolution                                                            renewables industry.
of supply and demand, with two directorates
responsible for carrying out specific activities in the
energy sector:

                                                                                                     22
The Republic of Tunisia

                                                                                                                              ENERGY CONTEXT
The monopoly on electricity generation, transmission          The Technical Commission for Renewable Energy
and distribution from 1962 to 1996 was held by the            (CTER – Commission Technique des Energies
Tunisian Company of Electricity and Gas (STEG –               Renouvelables) approves power generation projects
Société Tunisienne d’Electricité et du Gaz). STEG is          from renewable sources, subject to the system of
a state-owned company responsible for managing                authorisation under the Ministry of Energy, Mines
the production, transmission and distribution of              and Renewable Energies while approving extensions
electricity and gas in Tunisia in high-, medium-              to the validity of authorisations. In addition, CTER
and low-voltage lines and pipelines, including the            is the entity responsible for verifying the feasibility
implementation and operation of renewable energy              of developing private renewable projects on lands
projects.                                                     belonging to the state domain. It also examines all
                                                              queries and concerns relevant to the production of
ANME, a public institution under the Ministry of              electricity from renewable energy resources.
Energy, Mines and the Energy Transition, became
responsible as of 1985 for executing the government’s         Law No. 96-27 (April 1996) authorises the private
policies for promoting energy efficiency measures             generation of electricity through concessions provided
and the deployment of renewable energy. Moreover,             by state authorities. It does not allow, however, unsolicited
ANME is responsible for proposing regulations and             private power production (either from conventional or
manages the Energy Transition Fund (FTE – Fonds               renewable sources). Only one concession agreement has
de transition énergétique). ANME’s additional                 been granted, authorising the creation and operation of
responsibilities include managing the specific                Tunisia’s first IPP (Carthage Power Company in Radès,
renewable energy programmes (i.e. Prosol and Prosol           471 megawatts (MW)). This power station began
électrique) and developing awareness and training             operation in 2002 under a 20-year power purchase
campaigns for the deployment of renewable energy.             agreement (PPA). A private initiative to generate
                                                              electricity from flared gas led to a change in legislation,
The High Commission for Independent Power                     thus paving the way for the second concession
Production (Commission Supérieure de la                       agreement and Tunisia’s second IPP (Société d’Electricité
Production Indépendante d’Electricité), a commission          d’El Bibane, SEEB, 27 MW) commissioned in 2003 in El
established under Law No. 96-27, was organised as             Bibane, southern Tunisia, and shut down in 2010 due to
an inter-ministerial body responsible for deciding            unforeseen gas supply contamination and the struggle
on the procedures and selection criteria for the              to meet scheduled loan repayments. As of February
public tender process to (i) select independent               2018, the concessions are operationalised by Power
power producers (IPP); (ii) award contracts to IPPs;          Turbine Tunisia.
(iii) pass rulings on granting tax incentives to IPP
investors, the benefits from which are to be granted          Law No. 2015-12 sets the framework for renewable energy
to the developers of concessions; as well as any other        proliferation, which includes electricity production from
matter relating to independent power production.              renewable energy to generate electricity, transport
                                                              the generated electricity to other consumption points
The      Interdepartmental        Commission     for          through the national grid, and sell the excess produced
Independent Power Production (Commission                      energy to STEG at fixed prices within the limits of the
Interdépartementale de la Production Indépendante             maximum rate. With that said the law introduced
d’Electricité), an inter-ministerial body serving as          three new regulatory regimes: (i) self-generation/
a de facto regulator, is responsible for suggesting           consumption; (ii) independent power production for
the terms and conditions to be granted to IPP                 local consumption (concession and authorisation); and
concession developers, reviewing the reports and              (iii) independent power production for export. The fixed
examination of tenders submitted for decision to the          prices are set by the Minister in charge of energy - in this
High Commission for Independent Power Production,             case MEMTE - on opinion of the technical commission,
monitoring the negotiations for concession awards             with a contract subject to approval by MEMTE.
and securing public subsidies on a case-by-case
basis. Moreover, the Interdepartmental Commission             Law No. 2015-12, however, was amended by
for Independent Power Production is responsible for           Law 2019-47, dated 29 May 2019, with adjustments
proposing the extension of concession benefits and            to allow for corporate PPAs. This provides the right for
overseeing matters relevant to the implementation             companies adopting renewables for self-production to
of projects submitted by the Ministry of Energy,              sell electricity to other consumers or companies with
Mines and Renewable Energies.                                 subscribed power greater than the threshold set by
                                                              MEMTE electricity 30% and use the national grid network
                                                              to transport electricity.

                                                         23
Renewable Readiness Assessment:

2.3 Electricity supply and demand                                                         In this context, domestic production of natural gas
                                                                                          stood at approximately 2 139 ktoe, equivalent to 58%
By the end of 2018, total installed power generation                                      of the country’s overall electricity production needs.
capacity had reached 6 147 MW, of which STEG owns                                         With domestic natural gas production declining,
and operates 74.6% (4 587 MW). The remainder includes                                     Tunisia’s energy security could face serious challenges
the natural gas combined-cycle IPP, commissioned in                                       in the coming years.
2002 and managed by Carthage Power Company, with
an installed capacity of 471 MW. Natural gas accounts                                     Tunisia’s peak load has experienced robust growth
for 94.5% of domestic installed power capacity. See                                       during the past decade, as shown in Figure 10. The
modifications in Table 2. The evolution of the power                                      annual peak in electricity demand increased from
generation capacity during the period 2016-2018 and                                       2 172 MW in 2005 to 4 025 MW in 2017 (STEG, 2018a),
its composition are detailed in the table.                                                climbing at an average pace of 161 MW/year and
                                                                                          with an average annual growth rate of 5.5%. In 2018,
Electricity production by STEG and Carthage Power                                         however, the peak load dropped due to heightened
Company during the period 2013–2018 increased                                             energy efficiency measures. Since 2000, peak load
from 16 995 gigawatt-hours (GWh)/year to                                                  demand has transitioned from the winter period
19 060 GWh/year (STEG, 2019a), recording an average                                       at night to the summer season in the day due to an
annual growth rate of 3%.                                                                 increase in residential and commercial space cooling.

Table 2. Composition of net power generation capacity, Tunisia, 2016 - 2018,

                                  Types of equipment                                                  2016                     2017                     2018
                                      Steam turbines                                                  1 020                    920                      660
                                      Combined-cycle gas turbines                                     1 639                    1 612                    1 612
     Tunisian Company of
                                      Open-cycle gas turbines                                         1 772                    2 004                    2 004
     Electricity and Gas
                                      Hydro                                                             62                      62                       66
                                      Wind                                                             240                     240                      245
     Total STEG                                                                                       4 753                    4 838                    4 587
     Solar rooftop*                                                                                     36                      45                       62
     Independent power producer                                                                        471                      471                     498
     Total installed capacity (MW)                                                                    5 260                    5 315                    6 147
* Based on interviews conducted with National Agency for Energy Management (Agence Nationale pour la Maîtrise de l’Energie) and Tunisian Company of Electricity and Gas
  (STEG – Société Tunisienne de l’Electricité et du Gaz).

Figure 10. Annual peak load (MW), Tunisia, 20017- 2018

                 4 200
                                                                                                                                               4 025          3 916
                 4 000
                 3 800
                                                                                                                       3 599
                 3 600
                                                                                 3 353                3 465
Peak load (MW)

                 3 400
                 3 200                                                                                                             3 400
                                                          3 010    3 024
                 3 000                                                                        3 144
                 2 800
                                           2 660
                 2 600
                         2 416   2 467
                 2 400
                 2 200
                 2 000
                         2007      2008            2009    2010       2011         2012        2013          2014       2015          2016       2017           2018

Source: STEG (2019a), STEG (2018a); STEG (2016).

                                                                                 24
The Republic of Tunisia

                                                                                                                                        ENERGY CONTEXT
Electricity consumption increased from 10 355 GWh                         2.4 Transmission and distribution
in 2005 to 15 671 GWh in 2018, recording an average
growth rate of 4% per annum. Despite Tunisia’s                            STEG operated about 6 906 kilometres (km) of
slowdown in economic growth, the industrial sector                        transmission lines in 2018, with 208 km at the
remains the largest consumer of electricity. Its share                    400 kilovolt (kV) level, 2 910 km at the 225-kV level,
of total electricity consumption, has increased from                      2 382 km at the 150-kV level and 1 406 km at the
45% in 2005 to 67% in 2018. Since 2013, the largest                       90-kV level. The rate of loss on the transmission grid
growth in consumption has been recorded by STEG                           reached 2.3% in 2018, as in 2017 (STEG, 2019a).
customers connected to the low-voltage (LV) grid,
accounting for 47% of the electricity consumed in                         The transmission grid is currently interconnected
2017. Figure 11 illustrates the evolution of electricity                  via one 400 kV line, two 225 kV lines, one
consumption for the different economic sectors                            150 kV line and two 90 kV lines. Tunisia also has
during the period 2005-2018.                                              two 225 kV interconnections. Electricity trade with
                                                                          countries in the region represents less than 1% of
Figure 11. Evolution of electricity                                       national consumption and the interconnections are
           consumption by voltage level, 		                               used mainly for reliability and emergency purposes
           Tunisia, 2018                                                  (STEG, 2019a).

                                            1 302 GWh                     To expand interconnections and the capacity of the
                                                                          national grid for renewable energy absorption, an
                                       8%                                 infrastructure project known as ELMED has been
 7 390 GWh
                                                                          signed to build an underwater interconnection line
                                                                          with a capacity of 600 MW between Tunisia and Italy
                                                                          (400 kV, direct current, about 200 km).
                 48%
                                                                          Tunisia’s electricity distribution network totalled
                                               44%
                                                                          175 389 km by the end of 2018, including 59 691 km
                                                                          medium-voltage (MV) lines and 115 698 km LV lines.
                                                        6 856 GWh         The number of MV/LV transformer substations reached
                                                                          75 065 in 2018. Tunisia has an electrification rate
                                                                          estimated at 99.8%. The number of STEG customers
        High Voltage          Medium Voltage         Low Voltage          connected to the electricity grid is 4.05 million (high
                                                                          voltage (HV): 21 customers; MV: 19 291 customers;
Source: STEG (2019a).
                                                                          LV: 4 030 130 customers) (STEG, 2019a).

                                                                          2.5 Electricity tariffs
Figure 12. Evolution of electricity
           consumption in high-voltage                                    The selling price of electricity supplied to consumers
           and medium-voltage levels by                                   is set by the Tunisian government based on a proposal
           economic sector, Tunisia, 2018                                 submitted by STEG and after approval of MEMTE and
                                                                          the Ministry of Finance. The underlying principle of
                                       8%                                 the electricity tariffs is the level of the supply voltage.
                           13%

                    8%
                                                                          LV tariffs depend on the sector of the consumer
                                                                          (residential or non-residential), monthly consumption
                 4%                                                       (in kilowatt-hours (kWh)) and the level of power
                                                                          contracted (in kilovolt amperes). The two LV consumer
                                                                          categories are defined in Table 3. Tariff prices for the
                                                                          LV network are presented in Table 4 for the respective
                                                                          categories.
                                        67%

                         Agriculture    Industrial       Transport
                         Tourism        Services
Source: STEG (2019a).

                                                                     25
Renewable Readiness Assessment:

Table 3. Low-voltage tariff categories, Tunisia

                                                                       Low-voltage tariff categories
                              Economic Category                                                              Normal Category
                    Level of power supply: ≤ 2 kVA                                                    Level of power supply: > 2 kVA
                   Monthly electricity consumption                                                    Monthly electricity consumption
                         is up to 200 kWh                                                                goes beyond 200 kWh
                                                                                                Electricity billing is based on progressive
     Electricity billing is based on progressive tranches
                                                                                                  tranches with monthly consumption
                  with monthly consumption
                                                                                                       (1–200 kWh; 201–300 kWh;
           (1–50 kWh; 51–100 kWh; 101–200 kWh)
                                                                                                 301–500 kWh; greater than 500 kWh)
Source: STEG (2019a).
Note: kVA = kilovolt ampere; kWh = kilowatt hour.

Table 4. Current tariffs for low-voltage network, Tunisia, June 2019

                                                                           Power                        Energy price (USD/kWh)
                                                                           charge          Range of monthly consumption (kWh/month)
                  Tariff*                             Sector               (USD/
                                                                            kVA/         1–50      51–100    101–200    201–300   301–500     501 +
                                                                           month)
       Economic Category                            Residential                       0.022
        (1 and 2 kVA and                                                                    0.0322
                                                       Non-                  0.24
          consumption
       ≤ 200 kWh/month)                             residential                                   0.035
      Economic Category                             Residential                                   0.059                 0.073     0.114       0.139
  (1 and 2 kVA consumption
      > 200 kWh/month)                                 Non-                  0.24
       Normal Category                                                                            0.065                 0.081      0.117      0.131
                                                    residential
           (> 2 kVA)
Source: STEG (2019b).
Note: USD = U.S. dollar; kVA = kilovolt ampere; kWh = kilowatt-hour.
* TND 1 = USD 0.355 (July 2020).

Table 5. Time schedule for Four-shift tariff, Tunisia

                              Time schedule                                           September to May                      June to August
                                       Day                                                 07:00–18:00                 06:30–08:30; 13:30–19:00
                        Morning peak summer                                                       –                           08:30–13:30
                               Evening peak                                                18:00–21:00                        19:00–22:00
                                     Night                                                 21:00–07:00                       22:00–06:30
Source: STEG (2019b).

For MV subscribers, there are two main tariffs: Uniform                                  In addition to the two main tariffs, three special tariffs
tariff and the Four-shift tariff.                                                        exist for irrigation services in water pumping and
                                                                                         agriculture alike, as well as emergency services. These
Under the Four-shift tariff, the price per kWh varies                                    are shown in Table 6. Electricity sold to farmers for
according to the time of electricity consumption.                                        water pumping is the least expensive.
The distribution of the four shifts (day, morning peak
summer, evening peak and night) differs between
seasons, as shown in Table 5.

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